Trading Partner Collaboration On Steroids

19
VCF Fall Conference November 7-10, 2010 Trading Partner Collaboration on Steroids How simple technologies are reducing complexity Presented by: Donny Askin, CEO Arigo

Transcript of Trading Partner Collaboration On Steroids

1. Trading Partner Collaboration on SteroidsHow simple technologies are reducing complexity
Presented by:Donny Askin, CEOArigo
2. Todays Takeaways

  • Global Sourcing is complex 3. It isnt getting any easier 4. Business process and workflow remain ripe for continued optimization 5. Social Networking Tools leveraged within the context of Enterprise Collaboration = margin protection

Global Sourcing / Private Label
Margin, Margin, Margin
Brand, Brand, Brand
6. Global Sourcing Isnt Easy
Ocean Transport
Air Transport
Raw Material
Suppliers/sources
Designers
7. It Isnt Getting Any Easier
20% - Minimum wage increase in China in 2010
82% - Cost of cotton price increase since 2009
200% - Container cost increase since 2009
$15m and prosecution - Multiple CPSIA offenses
And consumer demand is flat
8. Cost of Labor is Rising
China: 20%+ in 2010
Bangladesh: $0.21
Indonesia: $0.35 - $0.71
Sri Lanka: $0.46
Mexico: $0.50 - $0.53
Vietnam: $0.52
India:$0.55 - $0.68
Nicaragua: $0.65
El Salvador: $0.92
China: $0.93*
Philippines: $0.94 -$1.00
Honduras: $1.02
Guatemala: $1.21
Costa Rica: $2.19
U.K.: $7.58 - $9.11
U.S.: $8.25 - $14.00
Source:INSTITUTE FOR GLOBAL LABOR & HUMAN RIGHTS.
9. Logistics Costs That was then
10. Logistics Costs are Rising
Pressures

  • Container shortage 11. Seasonal demand 12. Fuel prices rising 13. Regulatory Compliance

Raw Material Costs are Rising
14. Compliance Costs Grow

  • CPSIA, C-TPAT, 10 + 2 15. Factory Compliance Programs 16. Corporate Social Responsibility Programs(CSR)

Against All Odds

  • Increase visibility 17. Focus on productivity 18. Adopt Lean manufacturing 19. Continue to seek cheaper labor markets 20. Improve Trading Partner Collaboration

Evolution of Collaboration

  • Email 21. Real-time 22. Social 23. Aggregated

Quickly approaching;
needs organizational adoption
24. Enterprise Collaboration Basics

  • Enterprise 1.0 focus on documents created and shared primarily on a PC 25. Enterprise 2.0 focus on people and social sessions in which groups ofindividuals interact across companies and geographic boundaries. The goal of a social session is to create the effect of presence within the reality of absence.

Twitter and FriendsMeet Global Sourcing
26. Maslow's Hierarchy of Enterprise 2.0
27. Keys to Successful Enterprise Collaboration
Multi-modal
Integrated
Archivable
Attachable
28. Real World ApplicationLeave Failures at the Factory
29. Todays Takeaways

  • Global Sourcing is complex 30. It isnt getting any easier 31. Business process and workflow remain ripe for continued optimization 32. Social Networking Tools leveraged within the context of Enterprise Collaboration is a new weapon in the arsenal to protect margin